Business owners are well aware of the significance of filing a Business Activity Statement (BAS). Unlike individual taxpayers who only deal with income tax, businesses registered for Goods and Services Tax (GST) face a more complex process. They must regularly lodge a BAS, responsible for reporting and paying various business taxes, including GST and Pay As You Go (PAYG) instalments. Navigating BAS lodgement can be intricate, and errors are not uncommon. To ensure a smooth online lodgement process, it's crucial to steer clear of these common pitfalls:
Failing to separate business and personal transactions
An issue that is particularly prevalent amongst small business and sole traders is failing to accurately distinguish between their business transactions from their personal ones. This is important as a BAS will account for the taxes paid for business purchases. As a result, it is important to develop an approach that will allow you to differentiate between these two different transactions. An effective method is to upkeep a periodic bookkeeping schedule. By recording your business transactions more often, you will be able to more easily recognise any personal transaction that has accidentally been mixed into your business invoices. This will help to reduce the likelihood of placing private transactions into your business’ BAS and help to ensure a mistake-free submission.
Clerical errors
Complying with the ATO’s requirements
Finding help
Lodging your BAS is an important part of your business and with this guide, you can check to ensure that you have not made any of the mistakes that often occur. Conversely, if completing a BAS is still seeming like a burden, reaching out to a registered BAS Agent may be the best decision for you. You can easily book a consultation session with us right here to have a chat about your BAS or any of your financial needs!
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